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1 Sept 2001

Triumph Through Teamwork(HKTDC Jewellery, Vol 02,2001)

Triumph Through Teamwork

Waddy Jewellery Co Ltd

Waddy Jewellery Co
Ltd is a full-service manufacturer creating an array of fine jewellery in
9-22K gold and platinum using diamonds, precious and semiprecious gemstones.

ESTABLISHED by brothers Addy and Patrick Wong in 1988, Waddy Jewellery Co Ltd
has thrived through sibling teamwork. Addy had worked 16 years as a goldsmith
while Patrick contributed skills as an accomplished salesman. The synergy worked,
with Waddy now employing 200 people to export fine jewellery worldwide.

Much of the growth may be due to Patrick Wong's customer-oriented philosophy.
"Business requires co-operation between us and our clients with whom we
must work well to produce good results," he says.

Waddy is a full-service manufacturer capable of producing any type of fine
jewellery in 9-22K gold and platinum using diamonds, precious and semiprecious
gemstones and priced at US$50-30,000 FOB Hong Kong.

"We aim to provide the best quality products at the most reasonable prices.
Along with our standard products, we accept orders from customers to suit all
their needs," says Wong.

Among the company's best sellers are diamond rings and other items priced
at US$300-500. Wong sees customers shifting away from requesting these in white
gold in favour of yellow later this year.

Finding a specialization is important in Hong Kong's competitive jewellery
industry. For the past two years, Waddy has worked at perfecting invisible setting
pieces.

"Invisible setting is our favourite work," says Wong, animatedly
discussing the popular but complicated technique of allowing diamonds to be
set directly next to each other without visible supporting metal.

"Not many Hong Kong companies can do it since you need special machines
for manufacturing and cutting and you need to carefully train the workers. But
we made the effort, and our costs are low compared to other companies [including
competitors in Thailand]," says Wong.

Waddy participates at international jewellery shows in Hong Kong, the US,
Europe and the Middle East. In April, the company exhibited at Basel in Switzerland
for the second consecutive year, an experience Wong found useful.

"As we meet new customers, I can see we need to change our designs for
the European market. The gold content is more, thicker and heavier, but designs
are slimmer," he says.

Europe offers Waddy the most potential, while the US remains its largest market
with the most substantial sales growth in the past year. Sales to Asia and the
Middle East are also important.

Quality is a priority at the company's factories in Panyu (on the Chinese
mainland) and in Hong Kong. The 150-worker Panyu factory opened last year.

"Our factories handle each step of production from waxes and stone-setting
to polishing and finishing, so we can pay special attention to details and quality,"
says Wong.

Waddy is poised for more growth. "In this potentially slow market, we
have a good chance to expand our business. Other companies do not want to expand
now, but we do. We are very keen to find new customers and to grow with them,"
Wong says.

Strength In Diversity

Sanwa Pearl Trading Ltd

More than merely a
pearl-trader, Sanwa Pearl Trading Ltd stresses the need to adjust to changes
in demand while providing superior customer service.

REPUTEDLY, the jewellery business is the first to suffer amid economic difficulties
and the last to recover when conditions improve. Therefore, diversification
and flexibility are vital to any gemstone trading enterprise because such traits
enhance the ability to respond rapidly to market demands.

Sanwa Pearl Trading Ltd is much more than a mabe-pearl trading endeavour,
says managing director Henry Fung, who stresses the company's ability to change
with the times.

Imitation opals created in Japan provide Sanwa Pearl's highest sales volume.
"These are a special item and steady in the markets," Fung says.

Most of the company's imitation opals go to the US as loose cabochons and
beads. The high-quality imitation opals range in price from US$0.20 FOB Hong
Kong for a 2mm cabochon to US$200 for a full necklace.

The South China Opal brand registered by Sanwa Pearl is popular with customers
and now accounts for up to 50% of the company's business.

"The market constantly changes so it is good for us to be diversified,"
says Fung.

"We always stress customer service. After gaining customers, we try to
keep them forever. That means always providing any product we have traded, even
if not a 'hot' item."

Established in 1990, Sanwa Pearl merged with its manufacturing arm, Polfung
Brothers Enterprise Co, in 1995. Close co-operation enabled both enterprises
to grow steadily.

Shell and mabe products, as well as imitation pearls, made from an ocean-shell
nucleus base coated with a chemical pearl liquid, remain important. A 300-person
workforce at the company's factory on the Chinese mainland and in Japan produces
plenty of colour and quality.

Strands of 2-16mm imitation pearls are good sellers. The most popular imitate
South Sea cultured pearls, measure 10-14mm and have a wide variety of colours.
Fung is proud of the quality.

"They look more realistic than other imitation pearls, and our customers
are very pleased and enjoy them," he says.

Over the years, coral provided much of Sanwa Pearl's business, notably with
Europe. South China coral, known in Europe as sponge coral, is a 100% natural
product from the South China Sea. Although once popular, it endures lagging
demand, yet Fung carries stock because customers sometimes like it.

The good days for sponge-coral trading are gone, Fung says, yet he demonstrates
strong commitment to service by always providing coral upon request.

More superior service arises from Sanwa Pearl's pricing structures. Amid wide
exchange-rate fluctuations, especially affecting the Japanese yen, prices proved
too erratic for many customers. Fung responded by fixing prices at constant
levels and ignoring fluctuations in the cost to achieve high quality.

Confidence is crucial in customer relationships, Fung says. By such actions,
he strives to build trust in Sanwa Pearl.

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